Why Do You Need Standalone Health Insurance Even If Covered Under A Group Plan?

  •  3 min
  • 0
  • 16 Mar 2023

Continued health insurance coverage for lifelong is paramount. However, the sad part is that many working people covered under an employer-sponsored group health insurance policies do not realise the importance of having an additional standalone health insurance cover until reality hits them hard.

Group health insurance plans are designed for a group of people, such as employees of the organisation, whose premium is partially or fully paid by the employer. The policy covers you till the date of your employment with the company. You need to get standalone coverage for yourself after retirement or moving out of the company, which could be too late to get the health cover considering your age and health factors. There are specific reasons that make every employee have standalone health insurance cover and a group plan.

1. Extensive coverage

Though group health insurance plans cover all the major medical requirements, pre-existing illnesses without a waiting period, maternity care, etc., the coverage would still be inadequate. With the rising medical inflation, you need to have adequate coverage for yourself and your family. This requirement might not be fulfilled by your group’s health insurance plan. An additional standalone health cover would save you from liquidating your savings or investments or incurring out-of-pocket expenses during a medical emergency.

2. Need-based customisation

Unlike group health insurance plans designed for all employees of your company, a standalone health policy gives you the flexibility to customise the coverage based on your specific healthcare needs. Healthcare needs can undoubtedly vary from person to person. You can assess your coverage needs and then choose a coverage amount, including add-ons (such as critical illness rider, if any, based on the family history). You can have complete control over your policy and its inclusions, which is not the case for group health insurance plans.

3. Lifelong coverage

You may leave the company in the future, start your own business, or retire from work. Even after that, you will need health insurance coverage, which is not covered under the group health insurance plan. Comprehensive health insurance plans are costly and challenging to get as you age. Hence, it is crucial to avail of standalone health insurance coverage when you are young and healthy despite being covered under the group plan. Individual health plans come with lifelong coverage, which can be renewed often.

4. No claim bonus benefit

In a standalone health insurance policy, you get benefits by not claiming during the policy term each year. No claim bonus benefit can be utilised to reduce your premium and enhance your health insurance coverage. In a time of rising medical inflation, enhancing the coverage can be used.

Health insurance coverage is a necessity, and having adequate coverage is equally important. You need standalone health insurance for optimum and continued cover, even if you are covered under a group plan.

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